Musk effect on crypto market

The supersonic rate rally in the StarLink crypto market seemed as SpaceX launched fifty three Starlink orbit satellites into space on Saturday.

In a bizarre event, a cryptocurrency with the equal name as SpaceX’s satellite vary Starlink jumped over 140% as Elon Musk’s space technology agency launched fifty three of them into the Earth’s lower orbit.

Written as StarLink (STARL), the little-known crypto rallied 13.70% on Nov. thirteen — the day of the satellite launch, another 69% a day after it, and with the aid of up to 27% on Nov. 15. The large upside delivered STARL’s internet returns on funding by a little over 140% in simply much less than three days.

image 2021 11 15T11 12 13 838Z

STARL comes below the “Musk effect”

The title by myself acted as a frequent denominator between StarLink the crypto and Starlink the SpaceX satellite tv for pc wing. As a result, it seemed that merchants basically pumped the crypto via coordinated efforts whilst trying to cash in on SpaceX’s satellite tv for pc launch event.

Some of the reasons include Musk’s impact on the crypto market as well as the rise of memecoins and the “meme-stock” investing phenomenon as a whole.

It began with the billionaire investor tweeting in want of Dogecoin (DOGE)
, a meme cryptocurrency, that pushed the token’s charge to a document excessive of $0.76 in May 2021 following a 15,700%-plus year-to-date rally.

Musk’s choice to invest in Bitcoin (BTC) by using his different company, Tesla, also led the flagship cryptocurrency up from around $39,000 in February 2021 to almost $65,000 in April 2021.

Meanwhile, his criticism of Bitcoin over its alarming carbon emissions used to be regarded as instrumental by way of many market analysts behind the infamous May 2021 crypto crash.

image 2021 11 15T11 13 22 285Z

Additionally, Musk’s cryptic tweeting about his pet dog, a Japanese breed referred to as Shiba Inu, helped gasoline the rate rally of its namesake token. Trading beneath the ticker SHIB, the cryptocurrency’s year-to-date returns via the end of October came out to be around 375%.

Most recently, every other cryptocurrency named after Musk, particularly Dogelon Mars, surged through greater than 4,200% in October, underscoring how the “Musk effect” influenced crypto markets.

However, per its white paper, StarLink operates as a standalone crypto project, with no connection to SpaceX’s satellites.
It affords itself as a “decentralized metaverse project,” with STARL acting as its legitimate default currency, supporting customers to purchase everything from services such as gaming to digital real estate.

What’s subsequent for StarLink the crypto?

The trendy bout of STARL buying has pushed its price greater but has failed to generate ample rate momentum.
As shown in the chart below, STARL’s price has been forming greater highs through the ides of November, however its relative power index (RSI) has been sloping downward, painting decrease highs instead. That signals a classic bearish divergence due to a lack of follow-through upside momentum.

image 2021 11 15T11 15 03 376Z

As a result, STARL might also endure a rate correction in the coming classes as its ongoing parabolic assist tries to keep it from checking out $0.00064 as an interim downside target.
Nevertheless, retaining above the said price flooring ought to have STARL bulls retest the token’s file high close to $0.00087.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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